Archives For USCBP

U.S. Customs and Border Protection (CBP) published a Federal Register Notice inviting U.S. exporters to request CBP’s assistance in resolving disputes with foreign customs agencies over the tariff classification or customs valuation of U.S. exports. CBP explains that it is willing to assist U.S. exporters with these disputes under the auspices of the World Customs Organization (WCO). CBP is very active at the WCO and regularly participates in meetings concerning the application of the Harmonized Commodity Description and Coding System (HS System) and the World Trade Organization’s (WTO) Customs Valuation Agreement (CVA). According to CBP, this process was helpful in providing a successful outcome for clients who disputed a foreign customs agency’s classification of imported goods.

Tariff Classification
CBP represents the United States at meetings under the auspices of the International Convention on the Harmonized Commodity Description and Coding System (“HS Convention”). The HS Convention is the international agreement that provides that WCO Members will implement the HS System and comply with decisions of the various committees organized under the convention. CBP attends semiannual meetings of the WCO’s Harmonized System Committee (HSC), where contracting parties to the HS Convention examine policy matters, make decisions on classification questions, settle disputes, and prepare amendments to the HS System and its Explanatory Notes.

Article 10 of the HS Convention governs disputes between contracting parties concerning the interpretation or application of the HS Convention. The article provides that parties with potential disputes should first try to settle the dispute through bilateral negotiations. If such negotiation cannot resolve the dispute, the parties may refer the dispute to the HSC for its consideration and recommendations. The HSC, in turn, refers irreconcilable disputes to the WCO Council for its recommendations.

Customs Valuation
CBP represents the United States at the WCO with respect to issues arising under the CVA. Pursuant to Annex II to the CVA, the WCO’s Technical Committee on Customs Valuation (TCCV) is authorized to examine specific problems arising from the customs valuation systems of WTO Members. The TCCV is responsible for examining the administration of the CVA, providing WTO Members with advisory opinions regarding particular customs valuation issues, and issuing commentaries or explanatory notes regarding the CVA. Like the HSC, the TCCV may get involved in disputes amongst foreign customs agencies. CBP stands willing to help U.S. exporters with these disputes. This process may provide U.S. exporters with a faster procedure to resolve disputes than a typical WTO dispute.

CBP’s Role at the WCO May Resolve Export Issues for U.S. Exporters
CBP states in the notice that its communication with other customs administrations through the meetings of the HSC and TCCV at the WCO can “often serve to eliminate or resolve export issues for U.S. traders.” As an example, in 2014, a U.S. exporter notified CBP of a foreign customs administration’s misclassification of its textile exports. The U.S. exporter requested that pursuant to Article 10 of the HS Convention, CBP (1) contact the foreign customs administration to resolve the tariff classification dispute; and (2) refer the matter to the HSC at the WCO, if it could not be resolved bilaterally. After confirming it agreed with the U.S. exporter’s position, CBP engaged the foreign customs administration directly. Within seven months of the exporter’s request, CBP secured a favorable decision by the foreign customs administration to classify the merchandise in a manner consistent with the U.S. position. Consequently, the U.S. exporter obtained correct tariff treatment of its imported merchandise in the foreign country as a result of CBP’s engagement.

Port Technology discusses the latest advances in container security. Securing the supply chain and scanning cargo containers is a complex issue with significant policy impact. One of the most prominent items of regulation in this respect is the US SAFE Port Act of 2006, which introduced the requirement to scan 100 percent of cargo containers entering the US. But, even in the year 2012, six years after its introduction, the original intention of ‘Security and Accountability for Every Port’ was still not compatible with technical and organisational realities. Consequently, in 2012 the US Department of Homeland Security deferred the requirement of 100 percent scanning until July 2014, using a foreseen exception option in the SAFE Port Act. Therefore, the challenge of improving container security remains high on the agenda.

The European Commission’s Joint Research Centre (JRC) has worked on the issue of container security for more than 10 years now, starting with mechanical and electronic seals. But recently a paradigm shift has been introduced to the research activities: instead of trying to protect the traditional container itself, new container concepts and new monitoring approaches were looked at, and first research results are promising. The requested range of risk management tools was pursued in four major research strands, which in the future might support a comprehensive, multitechnology, and agreed-upon approach to container security: (i) new container materials; (ii) smart electronic sensors; (iii) wireless multi-hop communications, and (iv) mathematical outlier detection and security analysis. While the first three of these research areas are connected to the physical container itself, the outlier detection is a mechanism applied to ‘metadata’ (itinerary, transhipments, etc.) that does not have to come close to a container to perform a security analysis. Read the full article – Future cargo containers: how smart can they get? here!.

In contrast to the physical container technologies (described in the article), this outlier detection approach does not target the containers themselves but addresses the metadata information available about the container (e.g.itinerary or transhipment data). JRC has built a container traffic analysis system (CONTRAFFIC) which mathematically analyses the itinerary data of cargo containers, identifies unusual stopovers or loops and enables the research analysts to detect suspicious containers from a distance. The mathematical algorithms of CONTRAFFIC are continuously being improved, connecting more and more data with each other and analysing more than five million containers per month and matching the data mathematically against 800,000 import declarations. The system is currently queried over 20,000 times by different EU customs per year.

A first test of the system in a practical exercise with customs authorities has produced hit-rates of over 30 percent on a very much narrowed-down set of suspicious containers which finally were inspected. It needs to be underlined that the JRC’s CONTRAFFIC cannot be seen as a tool to identify all risk containers, and it does not even claim to identify a significant share of them, but it provides an efficiency gain for the inspectors and enables them to add additional information to their cases or to identify new cases before they take operationalaction. Insofar CONTRAFFIC is not meant to find the needle in the haystack, but to identify some of the many needles in a haystack with a higher probability. Source: Port Technology

U.S. Customs and Border Protection (CBP) today announced the launch of the first authorized app to expedite a traveler’s entry process into the United States. Mobile Passport Control (MPC) will allow eligible travelers to submit their passport information and customs declaration form via a smartphone or tablet prior to CBP inspection. This first-of-its-kind app was developed by Airside Mobile and Airports Council International-North America (ACI-NA) in partnership with CBP as part of a pilot program at the Hartsfield-Jackson Atlanta International Airport. IPhone and iPad users can download the app for free from Apple’s App Store.

Eligible travelers arriving at Hartsfield-Jackson Atlanta International Airport will be able to use the app beginning Aug. 13. MPC is expected to expand to more airports later this year and to Android smartphone users in the future.

“CBP continues to transform the international arrivals experience for travelers by offering new and innovative ways to expedite entry into the United States, while maintaining the highest standards of security” said CBP Commissioner R. Gil Kerlikowske. “By offering this app to passengers, we hope to build upon the success we have already experienced with Automated Passport Control, which has resulted in decreases in wait times as much as 25-40 percent, even with continued growth in international arrivals.”

MPC currently offers U.S. citizens and Canadian visitors a more efficient and secure in-person inspection between the CBP officer and the traveler upon arrival in the United States. Much like Automated Passport Control, the app does not require pre-approval, is free-to-use and does not collect any new information on travelers. As a result, travelers will experience shorter wait times, less congestion and faster processing.

“Mobile Passport exemplifies the forward-thinking commitment CBP and airports have to improving the passenger experience when entering the United States,” said ACI-NA President and CEO Kevin M. Burke. “This partnership between CBP and ACI-NA also represents an outstanding example of industry and government working together to find smart, cost-effective solutions. We look forward to continuing our collaboration with CBP as Mobile Passport begins its roll-out at U.S. airports later this year.”

There are five easy steps to MPC:

Download the Mobile Passport Control App from the Apple App Store prior to arriving

Create a profile with your passport information

Complete the “New Trip” section upon arrival in the United States

Submit your customs declaration form through the app to receive an electronic receipt with an Encrypted Quick Response (QR) code. This receipt will expire four hours after being issued

Bring your passport and smartphone or tablet with your digital bar-coded receipt to a CBP officer

ACI-NA contracted with Airside Mobile in MPC’s technical development. Information about Mobile Passport, including how to download, user eligibility and other frequently asked questions, is available on the Travel section of the CBP.gov website and the Airside Mobile website.

MPC is just one part of CBP’s resource optimization strategy which is transforming the way CBP does business in land, air and sea environments. As part of its commitment to innovation, CBP last year rolled out Automated Passport Control, which is now available in 22 locations, and automated the I-94 form. CBP has also enrolled more than two million travelers in trusted traveler programs such as Global Entry, NEXUS and SENTRI. These programs allow CBP officers to process travelers safely and efficiently while enhancing security and reducing operational costs. Source: USCBP

The U.S. signed a Customs Mutual Assistance Agreement (CMAA) with Kenya marking a significant milestone in collaboration on security and trade facilitation between the two countries. U.S. Customs and Border Protection (CBP) Deputy Commissioner (Acting) Kevin McAleenan signed the agreement on behalf of CBP and U.S. Immigration and Customs Enforcement (ICE) and Minister of the Treasury Henry Rotich signed the agreement on behalf of Kenya.

“Customs Mutual Assistance Agreements are valuable tools in the enforcement of our laws as they facilitate information sharing between international partners,” said Deputy Commissioner (Acting) Kevin McAleenan. “This agreement will expand our efforts to combat illicit cross-border activities and will enable us to continue our work to prevent, detect and investigate customs offenses.”

“Today’s signing represents the United States and Republic of Kenya’s joint commitment to elevate cooperation to safeguard our borders through the exchange of information and mutual assistance to combat customs law violations,” said ICE Principal Deputy Assistant Director Thomas S. Winkowski. “U.S. Immigration and Customs Enforcement, together with our partners at CBP, looks forward to future cooperative enforcement efforts with the Kenya Revenue Authority.”

The U.S. has now signed 71 CMAAs with other customs administrations across the world. CMAAs are bilateral agreements between countries and enforced by their respective customs administrations. They provide the legal framework for the exchange of information and evidence to assist countries in the enforcement of customs laws, including duty evasion, trafficking, proliferation, money laundering, and terrorism-related activities. CMAAs also serve as foundational documents for subsequent information sharing arrangements, including mutual recognition arrangements on authorized economic operator programs.

The U.S. – Kenya CMAA was signed at CBP headquarters as part of the U.S. – Africa Leadership Summit in Washington, D.C. The Summit included meetings between President Obama and 51 African heads of state. Source: GSN Magazine

UK freight forwarders have welcomed but are not surprised by the latest US postponement by two years of the implementation of new rules requiring all cargo containers entering the US to be security scanned prior to departure from overseas ports, with national association BIFA reiterating calls for the initiative to be abandoned.

Peter Quantrill, Director General of the British International Freight Association (BIFA), said it was “hardly surprising” to hear the recent news that the US had delayed the introduction of the new rules “amid questions over whether this is the best way to protect US ports”, calling the move “a healthy dose of common sense”.

Mr Quantrill commented: “As BIFA has said repeatedly, the Department of Homeland Security (DHS) has consistently underestimated the enormity of the task in hand relative to the costs both to the US government and foreign governments – as well as, importantly, the limited ability of contemporary screening technology to penetrate dense cargo, or large quantities of cargo in shipping containers.”

The deadline for implementation of 100% scanning of all inbound containers has already been delayed from 2012 to 1 July, 2014, and US Secretary for Homeland Security Jeh Johnson, who took over the role just six months ago, has now reportedly decided on another 24-month postponement.

BIFA’s comments follow the recent news of a letter from Thomas Carper, chairman of the US Senate Committee on Homeland Security and Governmental Affairs, which suggested that the use of systems available to scan containers would have a negative impact on trade capacity and the flow of cargo.

Quantrill adds: “Media reports suggest that the US Government now doubts whether it would be able to implement the mandate of 100% scanning, even in the long term, and it would appear that it now shares BIFA’s long-standing opinion that it is not the best use of taxpayer resources to meet the USA’s port security and homeland security needs.

“We have always said that expanding screening with available technology would slow the flow of commerce and drive up costs to consumers without bringing significant security benefits.”

He continued: “Whilst the latest news of a two-year delay appears to be a healthy dose of common sense at the US Department of Homeland Security, BIFA still believes that the US Government ought to take an even bolder step and repeal the original legislation.

“That would be the most appropriate way to address this flawed provision and allow the Department and the industry to continue to focus on real solutions, including strengthened risk-based management systems to address any security gaps that remain in global supply chains.” Source: Lloyds Loading List

Australia is to boost its intelligence sharing with the US customs and border protection service.

The immigration minister, Scott Morrison, said the Australian and US customs and border protection agencies had agreed to a formal strategic partnership from 2014, which would see two Australian officers posted to the US to strengthen intelligence co-operation.

Morrison said a trial of the closer engagement over the past year led to a crackdown on organised crime and resulted in several major drug seizures.

“These results demonstrate that governments must work together to effectively combat transnational crime and terrorism,” he said in a statement on Thursday.

The move to strengthen intelligence sharing with the US comes after a former US National Security Agency (NSA) contractor Edward Snowden leaked thousands of secret documents, including details of how Australian spies targeted the phone of the Indonesian president, Susilo Bambang Yudhoyono. Source: theguardian.com

Customs and Border Protection (CBP) has not assessed risks at select foreign ports with U.S.-bound shipments since 2005, part of a string of failures that has left key ports without a CBP presence, the Government Accountability Office says. (Hmm, never mind the impact caused to Customs administration in the host countries……)

In examining CBP’s Container Security Initiative program, GAO found that the agency developed a model for ranking additional seaports according to risk in 2009, but never implemented it because of budget cuts, according to the report.

GAO applied that risk model to 2012 cargo shipment data and found that the CSI program had no presence at about half the ports CSP found high risk. Meanwhile, 20 percent of existing CSI program ports were at lower-risk locations, according to the findings (.pdf).

Although GAO acknowledged host countries are not always willing to accommodate a CSI presence, and that removal of a CSI presence can negatively affect diplomatic relations, auditors said periodic assessments of cargo shipped from foreign ports could help CBP better guard against terror-related shipments.

Although there have been no known incidents of cargo containers being used to transport WMD, the maritime supply chain remains vulnerable to attacks. We recognize that it may not be possible to include all of the higher-risk ports in CSI because CSI requires the cooperation of sovereign foreign governments.

To better ensure the effectiveness of the CSI program, GAO recommends that the Secretary of Homeland Security direct the Commissioner of U.S. Customs and Border Protection to periodically assess the supply chain security risks from all foreign ports that ship cargo to the United States and use the results of these risk assessments to (1) inform any future expansion of CSI to additional locations and (2) determine whether changes need to be made to existing CSI ports and make adjustments as appropriate and feasible.

Such assessments “would help ensure that CBP is allocating its resources to provide the greatest possible coverage of high-risk cargo to best mitigate the risk of importing weapons of mass destruction or other terrorist contraband into the United States through the maritime supply chain,” GAO said.

According to the CBP release, “in order to achieve the most compliance with the least disruption to the trade and to domestic port operations, it has been applying a “measured and commonsense approach” to Importer Security Filing (ISF or 10+2) enforcement.

The Importer Security Filing (ISF) system—also referred to as the “10+2” data elements—requires both importers and carriers to transmit certain information to CBP regarding inbound ocean cargo 24 hours prior to lading that cargo at foreign ports. These rules are intended to satisfy certain requirements under the Security Accountability for Every (SAFE) Port Act of 2006 and the Trade Act of 2002, as amended by the Maritime Transportation Security Act of 2002.

Under the ISF, the following 10 data elements are required from the importer:

Manufacturer (or supplier) name and address

Seller (or owner) name and address

Buyer (or owner) name and address

Ship-to name and address

Container stuffing location

Consolidator (stuffer) name and address

Importer of record number/foreign trade zone applicant identification number

Last week, the National Customs Brokers & Forwarders Association of America, Inc. (NCBFAA) hosted a conference in Baltimore, MD targeting software developers interested in obtaining more information about US Customs and Border Protection’s (CBP’s) Automated Commercial Environment (ACE) and upcoming technical changes related to the PGA Message Set, Entry Summary Edits, Automated Corrections/Cancellations and AES Re-Engineering/Manifest Baseline development. During the conference, CBP made two important announcements which were heard and noted first hand from an Integration Point representative. These two announcements included:

CBP announced that it plans to mandate the use of manifest and cargo release in ACE by December 31, 2015 and mandate the use of ACE by December 31, 2016. CBP also provided a tentative release schedule for seven deployments that will lead up to this mandate. Each deployment will consist of one or two increments, and each increment will span over a period of twelve to thirteen weeks. On this road map, CBP announced some exciting functionalities to be released in the near future such as automated cancellation and/or correction of entries, integration of simplified entry with other modes of transport and certifying simplified entry through summary. In addition to the enhanced simplified entry process, CBP also gradually plans to include the validations that were not initially included in ACE entry summaries.

CBP is also working on the reengineering of AES and pilot programs of entry data collection for various Participating Government Agencies such as the US Environmental Protection Agency (EPA) and US Food Safety and Inspection Service (FSIS) and CBP plans to deploy this later on in 2013 and early in 2014.

Now there is relevance in all of this. It reinforces the growing importance of Customs’ focus on “cargo management”. Far too much emphasis is placed on the goods declaration alone. This is not only short-sighted but demonstrates an ignorance of the global supply chain. Without the ‘cargo report’ (manifest) the goods declaration is little more than a testament of what is purported to have been imported and exported.

January, 2013 saw the United States and the European Union implemented the mutual recognition arrangement for their respective supply chain security programmes. The US Customs and Border Protection (CBP) administers the Customs-Trade Partnership Against Terrorism (C-TPAT), which is now recognised as equivalent to the European Union’s Authorised Economic Operator (AEO) programme.

Should they elect to allow CBP to share certain information with the European Union, US importers authorised under C-TPAT will be considered secure and their exports will receive a lower-risk score by the customs administrations of EU member states. In practice, certification translates into time and money savings for parties dealing with trusted operators. In that sense, certified operators are successfully marketing their status as a distinguishing competitive advantage.

Both programmes are voluntary, security-based programmes aimed at improving supply chain security. As programme members, importers receive lower risk-assessment scores in customs administrations’ computer targeting software. Therefore, members are subject to fewer security-related inspections and controls. The mutual recognition arrangement between the United States and the European Union allows for members of one programme to receive reciprocal benefits when exporting to the other jurisdiction.

However, not all C-TPAT members qualify for full AEO benefits. Only Tiers 2 and 3 C-TPAT importers (considered as more secure) may receive a lower risk-assessment score, and consequently undergo fewer inspections when exporting to an EU member state. In addition, in order to receive these benefits, C-TPAT members must expressly elect for the United States to share certain information with the European Union and certify that their exports meet all applicable requirements.

The mutual recognition arrangement may also exempt members’ facilities from undergoing validation site visits by both administrations when initially being certified or during revalidation visits. This benefit is available for every tier of C-TPAT membership.

The mutual recognition arrangement applies only to C-TPAT importers which also act as exporters. A C-TPAT manufacturer will benefit from the arrangement only if it also acts as the US exporter. For example, if a US company owns a C-TPAT-certified manufacturer in Mexico that directly ships merchandise to the European Union, those shipments will not benefit from the arrangement.

CBP’s targeting system recognises AEO-certified entities by their manufacturer identification number. Certified manufacturers will receive benefits under the arrangement regardless of whether they are the EU exporter. A certified exporter which is not a manufacturer may obtain a manufacturer identification number to gain from the benefits of mutual recognition. As such, AEO-certified manufacturers and exporters may benefit under the arrangement, but only US exporters are eligible for benefits.

Although the United States and the European Union have recently announced the possibility of a US-EU free trade agreement, this arrangement is a trade facilitation measure that companies may elect to participate in immediately, regardless of the results of potential free trade agreement negotiations.

The following article published by Maritime Professional describes a new technology, already in use by a major terminal operator, which appears to put the requirement for 100% scanning of all inbound containers back on track. The article has been doing the rounds on a social media platform with some sceptism still being shared on its viability as a ‘100%’ scanning solution. All the same its always interesting to learn of new innovations. I guess the US Treasury has spent billions sponsoring these types of tech-development so as to vindicate its original threat to the rest of the world! (For the PDF version please click here!)

In July 2007, U.S. legislators passed a law requiring 100% scanning of U.S. bound containers at their last foreign ports by the year 2012. That federal requirement nearly died a quick death recently but has received a reprieve of sorts. Originally scheduled to take effect July 1, Homeland Security Secretary Janet Napolitano in May of 2012 notified Congress that she would use her authority under the 2007 law to delay implementation by two years. Napolitano said systems available to scan containers would result in a negative impact on trade capacity and the flow of cargo, and that some foreign ports do not have the physical characteristics needed to install such systems. If the last part was true then, however, it may not necessarily be the case now.

As reported in our 1Q 2012 edition of MarPro, pilot efforts were established at several foreign ports under the Secure Freight Initiative (SFI) targeting in-bound containers for weapons of mass destruction (WMD) prior to loading. Objections by trading partners surfaced and were confirmed by the Government Accounting Office (GAO).

In her testimony before the Senate Commerce, Science and Transportation Committee, DHS Secretary Janet Napolitano said in part, “DHS has learned a great deal from these pilots, but it has also encountered a number of steep challenges. Some of these issues relate to the limits on current technology. Technology doesn’t exist right now to effectively and automatically detect suspicious anomalies and cargo. This makes scanning difficult and time-consuming. …Therefore, DHS is compelled to seek the time extensions authorized by law with respect to the scanning provision.” At the time DHS’s Science & Technology Directorate (S&T) had already spent nearly $10 million on efforts to develop a container security device; to no avail.

New Technology: New Hope for Compliance
As the U.S. government continues to try to find a solution to its own scanning requirements, it also continues to fund testing when a promising solution comes to light. In September of last year, Decision Sciences International Corporation (DSIC), a provider of security and detection systems, announced that it was awarded a $2.7 million contract by the DHS Domestic Nuclear Detection Office (DNDO) for an Advanced Technology Demonstration (ATD) of its Multi-Mode Passive Detection System (MMPDS). Under the contract, DSIC supports government testing of MMPDS intended to evaluate the system’s effectiveness and readiness for transition to production. Before that, Decision Sciences was awarded another contract – this one worth $400,000 – by the U.S. Department of Defense to test muon tomography based scanning systems capable of detecting explosives.

The Multi-Mode Passive Detection System – how it works
Based in Chantilly, VA, with a development/production facility in Poway, CA, DSIC and its 27 employees and contractors hope to bring together hardware and software development, systems integration and cutting edge science to improve the safety and security of global commerce. Based on patented technology invented by scientists at the Alamos National Laboratory, the Multi-Mode Passive Detection System (MMPDS) was developed with private sector investment and expertise. MMPDS is billed as a safe, effective and reliable automated scanning device for detecting unshielded to heavily shielded nuclear and radiological threats. In reality, and as MarPro found out during a focused site visit in Freeport, Bahamas, the system does so much more.

DSIC’s passive scanning technology uses naturally occurring cosmic ray muons to detect potential threats in cargo, vehicles and other conveyances. DSIC President and CEO Dr. Stanton D. Sloane explains, “Equipment can generally be classified into two main categories; active and passive. Active systems include x-ray and/or radiation technologies. In other words, they add some sort of radiation or energy to the environment. Our system is 100 percent passive; we don’t generate any additional energy. We simply use the existing cosmic ray ‘muons’ to do the scanning. When cosmic rays hit the upper atmosphere, they create showers of atomic particles. One of the particles is a muon. High in mass, muons travel at near the velocity of light. Because of this, muons penetrate materials … even very dense materials … readily.

Normal cosmic radiation is 5000 muons per minute and penetrates through lead, steel, concrete and just about anything else. Sloane adds, “That’s really the breakthrough technology. We have upper and lower detectors. As the muons go through the upper detector we calculate their trajectory. As they go through the bottom detector, we calculate their trajectory and we look for a change in that track. The angular change of the track is a function of the density of the material that the muons go through. The denser the material that the muons penetrate, the larger the angular change.”

Beyond the efficacy of the system is its vivid imagery of the inside of the container it is scanning. With x-ray machines, if something is found, the container must be taken to the side, analysis performed and delays to the container magnified. Not so with Decision Sciences technology: false positives are eliminated because the density of typical items – and the dangerous ones too – can be catalogued.

The following article and its ensuing piece of legislation would seem to suggest that current Customs’ automated risk management is not doing its job, or at least is not as successful as authorities would often have one believe. Will this legislation signal a return to good old-fashioned ‘manual’ customs investigative work based on human intelligence? What the Congressman appears to overlook is that it is the US importers who are liable for correct clearance of foreign supplied goods. If CTPAT (and any other AEO scheme for that matter) have any worth, then surely the USCBP would look at de-accrediting US importers who fall foul of its import compliance levels? For many, the question remains – how successful (or even relevant) are the post 9/11 Customs Security measures? Besides creating significant expense budgets for Customs administrations, lucrative business opportunities for scientists, technology vendors, standards bodies, and of course consulting opportunities for the hundreds of audit firms and donor agencies – are the benefits, cost-savings and efficiencies in our current era of “Security” that visible? For many traders, all of this has been accepted as little more than the cost of doing and remaining in business. Period!

Congressman Dan Lipinski introduced legislation that will help American manufacturers grow their businesses and add jobs by cracking down on foreign companies that illegally avoid paying millions of dollars in customs duties. The Customs Training Enhancement Act (click on hyperlink to view the Bill) will facilitate the sharing of information between the private sector and U.S. Customs and Border Protection, enabling the government to do a better job of identifying schemes that cheat American taxpayers by importing foreign goods without paying duties.

The bill, which was folded into Democratic and Republican versions of more comprehensive Customs legislation in the previous Congress, further advances the goal of levelling the playing field so American businesses have a fairer shot against their foreign competitors.

“Blatant cheating by foreign firms has become more widespread at a time when American employers and workers are already at a serious disadvantage. This is not only bad for American business, but it hurts taxpayers by robbing the federal government of taxes it is rightfully owed,” Rep. Lipinski said. “The Customs Training Enhancement Act offers a common-sense approach by allowing impacted industries to provide our Customs agents the critical intelligence they need to spot the cheaters.”

Since 2001, importers and exporters of goods into the United States have avoided paying $600 million in duties, according to the U.S. Government Accountability Office, which estimates that 90 percent of all transhipped or mislabelled items originated in China. Foreign companies have avoided duties by misclassifying and undervaluing products or by shipping goods from one country to another on their way to the United States in order to disguise the country of origin.

Under Rep. Lipinski’s bill, Customs and Border Protection would be required to seek out companies and trade groups that have information that can identify misrepresented shipments. That information, in turn, would be shared directly from these industry experts to Customs agents working on the front lines.

The Customs Training Enhancement Act is modelled on a successful program forged between the steel industry and Customs and Border Protection in which company and industry officials have taught Customs agents how to spot products that have been deliberately mislabelled.

“The steel industry has shown us a public-private partnership that saves taxpayers millions of dollars while costing the federal government very few, if any, resources,” Lipinski said. “We need to expand this program and fight back against the lying and cheating by foreign companies that are hurting American taxpayers, businesses, and workers. The Customs Training Enhancement Act is an important first step.” Source: www.lipinski.house.gov

A U.S. Customs & Border Protection Mobile Radiation Portal Monitor (MRPM) drives down a row of containers checking them for radiation.The truck will drive down an entire row of containers, scan one side of them and then it will drive down and scan the other side of them.

U.S. Customs and Border Protection’s maritime mission is now back on-line with today’s processing of cargo vessels and containers. “In the aftermath of Hurricane Sandy the people of New York and New Jersey have faced great adversity, the men and women of CBP have been with them each step of the way,” said Robert E. Perez, CBP’s Lead Field Coordinator for CBP in FEMA Region II. “Today’s processing of cargo ships into the Port of New York/Newark marks the next step in CBP restoring its maritime operations here in the greater New York City area and returning to business as usual.”

CBP personnel are on site today processing 161 expected international flights with approximately 31,500 passengers at JFK and 92 expected international flights with approximately 14,500 passengers at Newark International Airport.

To facilitate the flow of goods into the New York area, CBP officers conducted cargo container inspections this morning at the Port of New York/Newark for the first time since Hurricane Sandy battered the New York/New Jersey area. CBP import and entry specialists were back to work as soon as their facility opened last week, processing merchandise to help facilitate the flow of much needed supplies and supporting the United States economy.

CBP worked very closely with the U. S. Coast Guard and the NY/NJ Port Authority to lift waterway restrictions and open marine terminals to cargo vessels. Officers were on site and ready to process shipments as soon as cargo was off loaded. CBP deployed officers to JFK and Newark Liberty International Airport from other parts of the country to assist with the processing of international passengers. Source: FEMA

When someone mentions drug running, most people probably picture a person coming through an airport carrying a suitcase with a false bottom or with balloons stuffed up their nether regions. We don’t usually imagine things like submarines. Unfortunately, the South American drug cartels not only imagine them, but they build and operate them. To help combat these underwater smugglers, the Department of Homeland Security Science and Technology Directorate (S&T) is operating their own drug-running submarine called PLUTO to develop and test a new generation of detection equipment.

Named after the hard to detect (former) planet, PLUTO reproduces the characteristics of what are commonly called “narco subs.” When rumors of their existence began to circulate in the 1990s, narco subs were dismissed as something out of a James Bond film and nicknamed “Bigfoot” because everyone in drug enforcement heard about them, but no one had seen one. Then one was captured in 2006 by the U.S. Coast Guard in the Eastern Pacific Ocean.

Narco subs are not true submarines. Instead, they’re a form of semi-submersible or, to give them their official designation, self-propelled, semi-submersibles (SPSSs). They ride very low in the water with only about three inches (7.62 ) of freeboard above the waterline and are designed to give only a tiny radar profile. They also ride very rough and their crews of three or four have little to eat, bad air and no toilet facilities as well as sometimes having an armed guard as a supervisor.

The subs are also meant to be expendable at the end of a delivery “Drug-running is lucrative. It is cheaper to simply build another vessel than to run the risk of trying to get a vessel and its crew home,” said Tom Tomaiko of S&T’s Borders and Maritime Security Division.

PLUTO was built in 2008 and is home-ported at Eglin Air Force Base near Fort Walton Beach, Florida, where it is maintained by the Air Force’s 46th Test Squadron, though it operates in the Gulf of Mexico, and Atlantic and Pacific Oceans. Forty-five feet (13.71 m) long and running at a maximum speed of ten knots (11.52 mph/18.52 kph), though it only cruises at four to eight knots (4.60 mph/7.4 kph to 9.20 mph/14.81 kph), PLUTO can carry up to four crew, but usually only operates with one due to safety.

It’s used by the U.S. Coast Guard, Customs and Border Protection/Air and Marine (CBP/OAM), U.S. Navy, U.S. Air Force and other national agencies as a target submarine capable of mimicking a narco sub for the purpose of testing detection systems from ships, planes and even satellites at various angles and under different sea conditions.

Customs and Border Protection used PLUTO to test its Dash 8 maritime surveillance aircraft’s SeaVue radar to determine detection distances and aspect angles for optimal mission performance and the U.S. Navy tested its P-3 aircraft’s maritime surveillance radar system against the pseudo narco-sub.

PLUTO is only one part of an escalating war between drug cartels and law enforcement agencies. Recently, the cartels have started using true submarines that travel submerged, which means that PLUTO may now be fighting yesterday’s war.

According to Admiral James Stavridis, former Joint Commander for all U.S. forces in the Caribbean, Central and South America, “criminals are never going to wait for law enforcement to catch up. They are always extending the boundaries of imagination, and likewise, we must strive to push forward technology and invest in systems designed specifically to counter the semi-submersible. We need to be able to rapidly detect and interdict this new type of threat, both for its current effects via the drug trade, and – more troublingly – for its potential as a weapon in the hands of terrorists.” Source: Department of Homeland Security

While American’s are accustomed to a period of mourning and remembrance over this time, it seems as though property mogul – Larry Silverstein – is more concerned with lost profits than the fate of a few thousand lost souls resulting from the 9/11 tragedy. Perhaps the US Airforce should be cited for not scrambling fighter jets quick enough to intercept the rogue planes. Moreover, why not cite the ‘negligent’ customs and immigration officials of the DHS for failing to intercept the rogue hijackers. A strange case of selective blame, indeed!

Most of the lawsuits arising from the hijacked plane attacks on the World Trade Center 11 years ago have been settled, but one demanding that United Airlines and American Airlines be held liable for loss of property and business could go to trial.

Two recent rulings by a federal judge in New York denying the airlines’ bid to dismiss the lawsuit over a narrow insurance dispute have opened the door to the entire case ending up in the hands of a jury. At issue is whether the two airlines and other defendants should pay additional damages to Larry Silverstein, the leaseholder of the World Trade Center property, beyond what he has already received from his own insurer.

Silverstein’s World Trade Center Properties blamed United, now United Continental Holdings Inc, and American Airlines, for breaches of security. The 2008 lawsuit also named aircraft manufacturer Boeing Co, the Massachusetts Port Authority, which manages Logan International Airport, and security companies.

The lawsuit claimed that negligence allowed hijackers to board two planes at the Boston airport and use them as missiles to destroy the 110-story twin towers and cause other buildings on the site in lower Manhattan to burn down. Before Sept. 11, the airlines and the security companies they hired oversaw security at airports and on planes. That responsibility now lies with the Transportation Security Administration, a government agency.

Silverstein is seeking $8.4 billion in damages for loss of property and lost business, even though U.S. District Judge Alvin Hellerstein has limited the amount to the $2.8 billion Silverstein paid for the leases. The lawsuit is among the last pieces of litigation resulting from the attacks of Sept. 11, 2001, which killed more than 3,000 people in New York, the Pentagon outside Washington, and Pennsylvania. Read the full article here!Source: Reuters.